Does Time-Use Data Support the Unitary Model? A Test using Swedish Time-Use Data from 1984 and 1993
Mainly because of data limitations, the unitary model (dating back to Becker, among others) has been the common-used theoretical framework in microanalysis of the household labor supply. Because of its simplicity, the household members are assumed to allocate time and consumption in consensus, having the implication that it is the households, not the individuals themselves, that are the interesting economic agents. In this paper, I study the household decision to supply labor and test if the unitary model holds. What is subject to a test in this paper is the resulting symmetry of the Slutsky matrix, i.e., that the compensated cross-wage effects are equal. The test uses Swedish time-use data from 1984 and 1993. As empirical specification, I use the trans-log, thereby avoiding some of the restrictive assumptions about functional forms that can be found in other studies. Contrary to most other studies, the conclusion is that symmetry cannot be rejected. This suggests that observed household labor supply could be an outcome of the single-criterion model.
|Date of creation:||16 Oct 2000|
|Date of revision:|
|Contact details of provider:|| Postal: |
Phone: + 46 18 471 25 00
Fax: + 46 18 471 14 78
Web page: http://www.nek.uu.se/
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Reuben Gronau, 1976.
"Leisure, Home Production and Work--The Theory of The Allocation of Time Revisited,"
NBER Working Papers
0137, National Bureau of Economic Research, Inc.
- Gronau, Reuben, 1977. "Leisure, Home Production, and Work-The Theory of the Allocation of Time Revisited," Journal of Political Economy, University of Chicago Press, vol. 85(6), pages 1099-1123, December.
- Browning, Martin & Francois Bourguignon & Pierre-Andre Chiappori & Valerie Lechene, 1994.
"Income and Outcomes: A Structural Model of Intrahousehold Allocation,"
Journal of Political Economy,
University of Chicago Press, vol. 102(6), pages 1067-96, December.
- Browning, M. & Bourguignon, F. & Chiappori, P.A. & Lechene, V., 1992. "Incomes and Outcomes: A structural Model of Intra-Household Allocation," DELTA Working Papers 92-23, DELTA (Ecole normale supérieure).
- Blundell, Richard & Walker, Ian, 1986. "A Life-Cycle Consistent Empirical Model of Family Labour Supply Using Cross-Section Data," Review of Economic Studies, Wiley Blackwell, vol. 53(4), pages 539-58, August.
- Apps, P.F. & Rees, R., 1996.
"Collective Labor Supply and Household Production,"
301, Australian National University - Department of Economics.
- Fitgerald, John M & Swenson, Matthew S & Wicks, John H, 1996. "Valuation of Household Production at Market Prices and Estimation of Production Functions," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 42(2), pages 165-80, June.
- Orley Ashenfelter & James Heckman, 1971.
"The Estimation of Income and Substitution Effects in a Model of Family Labor Supply,"
402, Princeton University, Department of Economics, Industrial Relations Section..
- Ashenfelter, Orley & Heckman, James J, 1974. "The Estimation of Income and Substitution Effects in a Model of Family Labor Supply," Econometrica, Econometric Society, vol. 42(1), pages 73-85, January.
- Kooreman, P. & Kapteyn, A.J., 1984.
"A disaggregated analysis of the allocation of time within the household,"
FEW 153, Tilburg University, School of Economics and Management.
- Kooreman, Peter & Kapteyn, Arie, 1987. "A Disaggregated Analysis of the Allocation of Time within the Household," Journal of Political Economy, University of Chicago Press, vol. 95(2), pages 223-49, April.
- Thomas Aronsson & Sven-Olov Daunfeldt & Magnus Wikström, 2001.
"Estimating intrahousehold allocation in a collective model with household production,"
Journal of Population Economics,
Springer, vol. 14(4), pages 569-584.
- Aronsson, Thomas & Daunfeldt, Sven-Olov & Wikström, Magnus, 1999. "Estimating Intrahousehold Allocation in a Collective Model With Household Production," Umeå Economic Studies 495, Umeå University, Department of Economics.
- J. A. Hausman, 1976.
"Specification Tests in Econometrics,"
185, Massachusetts Institute of Technology (MIT), Department of Economics.
- Blomquist, Soren, 1996. "Estimation methods for male labor supply functions How to take account of nonlinear taxes," Journal of Econometrics, Elsevier, vol. 70(2), pages 383-405, February.
- Thomas, D., 1989.
"Intra-Household Resource Allocation: An Inferential Approach,"
586, Yale - Economic Growth Center.
- Duncan Thomas, 1990. "Intra-Household Resource Allocation: An Inferential Approach," Journal of Human Resources, University of Wisconsin Press, vol. 25(4), pages 635-664.
- Kooreman, P. & Kapteyn, A.J., 1984.
"Estimation of rationed and unrationed household labor supply functions using flexible functional forms,"
FEW 157, Tilburg University, School of Economics and Management.
- Kooreman, Peter & Kapteyn, Arie, 1986. "Estimation of Rationed and Unrationed Household Labour Supply Functions Using Flexible Functional Forms," Economic Journal, Royal Economic Society, vol. 96(382), pages 398-412, June.
- N. S. Blomquist & U. Hansson-Brusewitz, 1990. "The Effect of Taxes on Male and Female Labor Supply in Sweden," Journal of Human Resources, University of Wisconsin Press, vol. 25(3), pages 317-357.
- Graham, John W & Green, Carole A, 1984. "Estimating the Parameters of a Household Production Function with Joint Products," The Review of Economics and Statistics, MIT Press, vol. 66(2), pages 277-82, May.
- T. Paul Schultz, 1990.
"Testing the Neoclassical Model of Family Labor Supply and Fertility,"
Journal of Human Resources,
University of Wisconsin Press, vol. 25(4), pages 599-634.
- Schultz, T.P., 1990. "Testing The Neoclassical Model Of Family Labor Supply And Fertility," Papers 601, Yale - Economic Growth Center.
- Kooreman, P. & Kapteyn, A.J., 1987. "On the identifiability of household production functions with joint products : A comment," Research Memorandum FEW 254, Tilburg University, School of Economics and Management.
- Blundell, Richard & Duncan, Alan & Meghir, Costas, 1992. "Taxation in Empirical Labour Supply Models: Lone Mothers in the UK," Economic Journal, Royal Economic Society, vol. 102(411), pages 265-78, March.
- Chiappori, Pierre-Andre, 1988. "Rational Household Labor Supply," Econometrica, Econometric Society, vol. 56(1), pages 63-90, January.
- Chiappori, P.A., 1989.
"Collective Labour Supply and Welfare,"
DELTA Working Papers
89-07, DELTA (Ecole normale supérieure).
- Fortin, Bernard & Lacroix, Guy, 1997. "A Test of the Unitary and Collective Models of Household Labour Supply," Economic Journal, Royal Economic Society, vol. 107(443), pages 933-55, July.
- Klevmarken, Anders, 1982. "Household Market and Nonmarket Activities (HUS) – A Pilot Study," Working Paper Series 77, Research Institute of Industrial Economics.
- Lundberg, Shelly J, 1988. "Labor Supply of Husbands and Wives: A Simultaneous Equations Approach," The Review of Economics and Statistics, MIT Press, vol. 70(2), pages 224-35, May.
- Killingsworth, Mark R. & Heckman, James J., 1987. "Female labor supply: A survey," Handbook of Labor Economics, in: O. Ashenfelter & R. Layard (ed.), Handbook of Labor Economics, edition 1, volume 1, chapter 2, pages 103-204 Elsevier.
- Flood, Lennart, 1998. "The Structure of the Tax-system and the Estimation of Labor Supply Models," Working Papers in Economics 1, University of Gothenburg, Department of Economics.
When requesting a correction, please mention this item's handle: RePEc:hhs:uunewp:2000_014. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Katarina Grönvall)
If references are entirely missing, you can add them using this form.